All eyes are on whether the falling euro-dollar exchange rate will continue to slide

All eyes are on whether the falling euro-dollar exchange rate will continue to slide

17.12.2025

In yesterday's U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 112.720 to 112.288. Price action remained confined to the area around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have stalled near the support level provided by the 75-period MA, while on the daily chart, the pair has broken below the 10-period MA—which had previously provided support—and the RSI is currently pulling back after touching the 70 level.

Among European currencies, the euro fell against the U.S. dollar.The euro traded between 1.1803 and 1.1734 against the US dollar. It fell from the +3σ to the -2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the RSI has dropped from 72 to 46, and on the daily chart, it has plummeted from the high levels seen since September of this year. Furthermore, as it has continued to test lower levels during today’s Asian session, we should watch for further weakness in the euro during the European session.

Today’s economic indicators include the Westpac Leading Economic Index (Australia) at 8:30, Japan’s trade balance at 8:50, the UK’s Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Price Index (RPI) at 16:00, the IFO Business Climate Index (Germany) at 18:00, the Eurozone Consumer Price Index (CPI) at 19:00, and the UK’sCBI Business Survey, the U.S. MBA Mortgage Applications Index at 9:00 PM, remarks by Fed Governor Waller at 10:15 PM, U.S. weekly crude oil inventories at 12:30 AM, and the U.S. 20-year Treasury auction at 3:00 AM. We will be watching closely to see if the falling EUR/USD pair will extend its decline.